Featured Product

    BNM Issues Policy Documents on D-SIB and Capital Adequacy Frameworks

    February 05, 2020

    BNM issued policy documents on the framework for domestic systemically important banks (D-SIBs) and on the capital adequacy frameworks for both conventional and Islamic banks. The policy on D-SIBs sets out the assessment methodology to identify D-SIBs in Malaysia and contains the inaugural list of D-SIBs. Also published were the frequently asked questions and the response to feedback received to the policy consultation, along with the associated reporting template, reporting interpretations, and submission instructions. Additionally, the capital adequacy frameworks (capital components) for conventional and Islamic banks set out the approach to compute regulatory capital adequacy ratios as well as the levels of ratios at which a financial institution is required to operate. The policy documents came into effect on February 05, 2020.

    The policy document on D-SIB framework sets out the higher loss absorbency (HLA) and reporting requirements applicable to financial institutions, along with the assessment methodology employed to identify D-SIBs in Malaysia. BNM, at its discretion, may impose additional requirements and policy measures as deemed appropriate to manage risks posed by D-SIBs. The banking groups identified as D-SIBs based on the 2018 data and the assessment methodology set out in the policy document are as follows: 

    • Malayan Banking Berhad (Bucket 2)
    • CIMB Group Holdings Berhad (Bucket 2)
    • Public Bank Berhad (Bucket 1)

    In accordance with the D-SIB framework, the applicable HLA requirement for the identified D-SIBs ranges between 0.5% to 1.0% of risk-weighted assets, at the consolidated level. The HLA requirement for these D-SIBs will come into effect on January 31, 2021. Going forward, BNM will annually update the list of D-SIBs and publish this list with the release of the Financial Stability Review in the second half of each year.

     

    Related Links

    Effective Date: February 05, 2020

    Keywords: Asia Pacific, Malaysia, Banking, Islamic Banking, Basel III, Capital Adequacy Framework, D-SIBs, Reporting, HLA, BNM

    Featured Experts
    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR

    The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy

    The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8196